Comments on: $3.6bn Samsung facility supplies Apple A5 chip and maybe A6

By: Alexander Dewing

Alexander Dewing — Tue, 20 Dec 2011 04:21:00 +0000

They are both making so much money out of this agreement. Samsung is not going to give up billions in sales to deal with a few lawsuits that even in their worst case scenario might not cost one month of profit from this supply chain.
This seeming dichotomy by suing your supplier makes far more sense when you realize that Samsung smartphones and Samsung manufacturing are effectively two companies. Samsung isn’t going to affect iPhone sales by terminating a contract (I am sure early tem fees will be in tens of billions) as that is a massive revenue stream. Apple could (with a bit of effort) move to tsmc or use some of intel’s extra fab time starting 2013. Thusly, iphone supply and price will not change, and samsung would only lose revenue while their smartphone line would not have any advantage. Lose in every aspect of the word for samsung. They should (and will) suffer with the lesser of two evils and possibly pay in lawsuits while making boatloads of cash from their competitor’s success. I don’t know what business methodology you support, by I kind of like the processes that you become rich because of a competitor.

And samsung makes…precisely two parts in an iphone(4s, they also had a share of ram in 4):
1: the processor…that’s what this article is about. this is fabbed by samsung, things can move with limited (as in is possible) effort
2: DRAM: this is industry standard ram, standard pinout, package on package. If samsung quit (and elpida and toshiba who already supply apple couldn’t hold the extra load), apple could run over to hynix and sign up in an instant, maybe for a few more cents per unit.

In older versions, the flash was also partially samsung supplied. As far as I am aware, the 4s does not use samsung flash, in favor of toshiba primarily. this part is again, industry standard.

By: Sopheak Maxx Hean

Sopheak Maxx Hean — Mon, 19 Dec 2011 20:22:00 +0000

Hahahaha pathetic Apple. Going back and put your tail between your rear legs. But without Samsung then Apple would struggle without A5 and A6 Chips. Oh wait Apple you can try use Nvidia chip or TI or even Snapdragons on your next iphone 5.

By: James

James — Fri, 16 Dec 2011 13:56:00 +0000

cause business is business if samsung supplying apple with parts for their products thats doesnt mean apple will allow them to steal their ideas .

By: Anonymous

Anonymous — Fri, 16 Dec 2011 13:38:00 +0000

Meh. I really hoped for a proper divorce so that samsung can build more exynos for their devices

By: Anonymous

Anonymous — Fri, 16 Dec 2011 12:16:00 +0000

They are like husband and wife…

By: Jon Garrett

Jon Garrett — Fri, 16 Dec 2011 11:32:00 +0000

everybody should be asking these two companies those questions.

By: Micah Madru

Micah Madru — Fri, 16 Dec 2011 10:50:00 +0000

“The two firms are midway through a lengthy legal
campaign amid claims of patent and design trademark infringement, that
has seen Samsung attempt to block sales of the very devices its chips
power.” Ummm way to paint samsung badly here….

By: Anonymous

Anonymous — Fri, 16 Dec 2011 10:38:00 +0000

Yet I don’t understand two things about these two companies.

1. APPLE: Why would you sue your primary component supplier?

2. SAMSUNG: Why don’t you design better looking products when you are supplying them more than half of the parts used in their products.